Permian Highway Pipeline announces final investment decision for expansion

Permian Highway Pipeline, LLC (PHP) announced Friday that it had secured binding firm transportation agreements and had made a final investment decision to proceed with its expansion project.

The expansion project will increase PHP’s capacity by approximately 550 million cubic feet per day and will involve additional compression on PHP to increase delivery of natural gas from the Waha area to multiple mainline connection, Katy, Texas, and other U.S. Gulf Coast markets. The target in-service date for the project is Nov. 1, 2023, pending necessary approvals.

“We are excited to have achieved FID on this very important expansion,” said Kinder Morgan Natural Gas Midstream President Sital Mody. “The project will alleviate transportation constraints out of the Permian Basin so as to further support meeting our domestic and global energy needs.”

Kinder Morgan owns an interest in or operates approximately 83,000 miles of pipeline, 141 terminals, and 700 billion cubic feet of working natural gas storage capacity, with pipelines transporting natural gas, refined petroleum products, crude oil, CO2, and other products.

PHP is a jointly owned subsidiary of Kinder Morgan, Inc., Kinetik Holdings Inc., and ExxonMobil.

“This expansion couldn’t come at a more critical time, as it will foster future natural gas production growth in West Texas and provide several liquefaction facilities along the Texas Gulf Coast with more affordable, reliable supply,” said Jamie Welch, President and CEO of Kinetik. “In addition, approximately 30 of Kinetik’s customers will gain access to premium-priced markets and transportation flow assurance, which is critical to minimizing flared volumes.”